The report looked at the "good" and "bad" scenarios for the countries.

Italy in particular would need to drastically improve its economic growth to avoid a default.

The report calculates that Italy's debt will rise from 128% of annual output to 150% by 2017 if bond yields stay above the current 6% and growth remains low. Even under the good scenario, growth remains too low.

Italy only grew 0.1% in the first quarter of last year.

As Spain's debt is lower, even under the "bad" scenario it should be able to keep debt to 75% of GDP.